A joint study by KPMG China and Aspen Digital estimates that 58% of family offices and high net worth individuals (HNWIs) from Hong Kong and Singapore allocate some of their wealth to cryptocurrencies.
Meanwhile, 34% of non-investors intend to join the ecosystem in the near future.
Almost two-thirds are holders
The survey shows that Bitcoin and Ethereum are the most popular cryptocurrencies among family offices and HNWIs in Hong Kong and Singapore.
These consumers are also showing strong interest in non-fungible tokens (NFTs) and decentralized finance (DeFi).
“Interest in NFTs has exploded since 2021, while interest in DeFi started in 2020 and is still interesting,” said Yang He, CEO of Aspen Digital.
Despite the negative macroeconomic events and bear market, the executive expects cryptocurrencies to become a more attractive financial tool for investors in both countries.
Paul McSheaffrey, senior banking partner at KPMG China, holds the same view. Depending on inflation and currency crises, more and more consumers may allocate a small portion of their money to cryptocurrencies and wait for a potential price increase:
“There’s really a lot of upside for HNWIs and family offices, so they might be thinking, why not put 2% or 3% of my portfolio in it and see what happens.”
According to Arthur Hayes, Hong Kong’s participation in the cryptocurrency world is a key factor that could spark the next bull run. Authorities in the country recently revealed plans to legalize retail transactions in cryptocurrencies and become a hub for Crypto assets.
Hongkong. Photo by bady abbas on Unsplash.
On the other hand, Singaporean officials have withdrawn some support for the industry. After Terra crashed, they enforced strict rules to prevent something like this from happening.
Cryptocurrency adoption on the rise in Southeast Asia
Over the past few months, many countries from that part of the world have shown great interest in Bitcoin and alternative coins.
A survey by Chainalysis found that Vietnam, with a score of 1.000, is the global leader in cryptocurrency adoption. A major reason for its lead may be that locals find blockchain-based games very interesting.
The second place belongs to the Philippines, while Thailand and Indonesia are also in the top 20.
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